Mr. Sheldon Bennett reports

DMG BLOCKCHAIN SOLUTIONS ISSUES STATEMENT REGARDING THE BINANCE SECURITY INCIDENT AND PROVIDES UPDATE ON PATENTS GRANTED

DMG Blockchain Solutions Inc. and its affiliates have not been affected by the recent Binance security incident, and all client assets remain secure.

DMG and its affiliates prioritize information security, fraud prevention and asset protection. The company's security framework combines restricted access, separation of duties and multiple levels of transaction approval. Together, these controls are designed to ensure that a single compromised device does not provide a user the authority needed to initiate, approve or complete an unauthorized transaction.

Building enterprise value through intellectual property

Beyond ensuring robust security for digital assets, DMG continues to advance its proprietary infrastructure solutions. DMG has strategically developed a patent portfolio to differentiate itself from commoditized digital asset infrastructure providers and transition to an enterprise-grade blockchain technology provider. By systematically securing intellectual property across institutional compliance, network verification and proprietary transaction routing, DMG directly supports the enablement of institutional blockchain adoption.

For shareholders, this comprehensive intellectual property portfolio establishes a defensible competitive position for DMG's digital asset platform and helps position DMG to capture specialized transaction processing revenues across global blockchain ecosystems. Accelerating this strategy, DMG was granted two foundational U.S. patents in 2026.

U.S. patent No. 12,548,012: custom mempool protocol associated with processing of cryptographic events (granted: Feb. 10, 2026)

This patent establishes a proprietary custom mempool protocol that secures and accelerates how cryptographic events and ordinals are routed, batched and confirmed on chain. Rather than exposing unconfirmed transactions to public peer-to-peer networks, the technology creates a direct pipeline between applications and participating mining nodes while maintaining full compliance with public blockchain consensus algorithms.

"Securing U.S. Patent 12,548,012 validates the groundbreaking architecture that DMG developed to bring institutional-grade predictability to blockchain networks," stated Sheldon Bennett, chief executive officer of DMG. "By bypassing public node congestion and routing transactions through a controlled mempool pipeline, our approach sets a new benchmark for how enterprises can securely transact with complete confidence and compliance."

U.S. patent No. 12,744,684: multiple ordinals in one transmission (granted: Sept. 22, 2026)

DMG's newest patent modernizes how digital assets and data are inscribed onto the blockchain. By embedding multiple ordinals directly into transaction data fields and hashing them simultaneously into each block, the system significantly increases batch processing efficiency, lowers transaction overhead and enables seamless on-chain storage without network congestion.

Issued patent portfolio overview

DMG's global intellectual property holdings currently include nine issued patents, two allowed applications and 13 pending applications across the United States, Canada, Europe, Australia and WIPO.

Grant of stock options and restricted stock units

DMG announces the granting of stock options and RSUs to employees and directors of the company. A total of 105,100 stock options and 1,045,500 restricted stock units have been granted. The options are exercisable over five years at a price of 40 cents per share, with vesting in 25-per-cent increments on the six-, 12-, 18- and 24-month anniversaries of the grant date. The RSUs vest in one year. These grants are designed to create an incentive structure that aligns longer-term performance with the company's growth.

About DMG Blockchain Solutions Inc.

DMG is a sustainable, vertically integrated data centre and digital asset technology company that develops, manages and operates comprehensive platform solutions to monetize the artificial intelligence and blockchain ecosystems. The company's operations are driven by two strategic pillars: data centre infrastructure (Core) and digital asset financial services (Core+). DMG is expanding its platform to include artificial intelligence and sovereign compute solutions, supporting government, enterprise and research organizations across Canada.

We seek Safe Harbor.